This map shows the site of a proposed Hilcorp well pad off the Old Sterling Highway. (Illustration provided)

This map shows the site of a proposed Hilcorp well pad off the Old Sterling Highway. (Illustration provided)

Borough proposes oil and gas leases in Anchor Point

Lower Kenai Peninsula residents have a chance to learn about proposed oil and gas leases on Kenai Peninsula Borough land in the Anchor Point area at an upcoming Anchor Point Advisory Planning Commission meeting

At the Oct. 23 Kenai Peninsula Borough Assembly meeting, the assembly introduced an ordinance to lease parcels in the Anchor Point area to Hilcorp for oil and gas subsurface rights. Assembly member Willy Dunne, who represents Anchor Point and other parts of the lower Kenai Peninsula, pulled the ordinance from the consent agenda for further discussion.

It will be on the table for discussion at Anchor Point’s planning commission meeting at 7 p.m. Wednesday, Nov. 7, at the Anchor Point Chamber of Commerce.

ADVERTISEMENT
0 seconds of 0 secondsVolume 0%
Press shift question mark to access a list of keyboard shortcuts
00:00
00:00
00:00
 

Ordinance 2018-34 would lease oil and gas rights at a minimum 12.5 percent royalty. One of the lease sites is near Chapman Elementary School on land now used as a solid waste and recycling transfer site. Called the Sea View Pad, the proposed Hilcorp well site is on land off the Old Sterling Highway.

“I wanted to let folks know, especially folks down in the Anchor Point area, that there is borough code that requires that leases such as this would not include surface entry,” Dunne said at the meeting. “It’s sub surface only, even though the lease language does make reference to surface activities. One of the concerns I heard from people was that perhaps we need to negotiate a better deal on this.”

In a follow-up interview, Dunne said borough Mayor Charlie Pierce told him he would like to negotiate a better royalty percentage.

Dunne said he’s received many questions about the ordinance and said the public deserves a little more information.

“It caught people by surprise,” Dunne said. “It went through the state process, but of course without Coastal Zone Management authority anymore, the public isn’t often aware of what’s going on.”

The 12.5 percent royalty is the minimum required under borough code.

The ordinance comes up for a public hearing at the Nov. 20 assembly meeting. Assembly member Kenn Carpenter said a hearing would be set up in the Homer area before the 20th.

More details on the Anchor Point Advisory Planning Commission meeting will be posted soon on the KPB Planning Department page.

Reach Victoria Petersen at vpetersen@peninsulaclarion.com. Reach Michael Armstrong at marmstrong@homernews.com.

More in News

Vice President Kelly Cooper speaks during a meeting of the Kenai Peninsula Borough Assembly in Soldotna, Alaska, on Tuesday, July 8, 2025. (Jake Dye/Peninsula Clarion)
Borough considers seasonal sales tax rate

Borough sales tax would be modified from a flat 3% to a seasonal model of 4% in summer months and 2% in winter months.

The Kasilof River is seen from the Kasilof River Recreation Area, July 30, 2019, in Kasilof, Alaska. (Photo by Erin Thompson/Peninsula Clarion)
King salmon fishing on Kasilof closes Thursday

If any king salmon is caught while fishing for other species, they may not be removed from the water and must be released immediately.

Un’a, a female sea otter pup who was admitted to the Alaska SeaLife Center in June 2025, plays with an enrichment toy at the center in Seward, Alaska. Photo courtesy of the Alaska SeaLife Center
SeaLife Center admits 2 seal pups, 1 orphaned otter

The three pups join the Alaska SeaLife Center’s ‘growing’ patient list.

James Wardlow demonstrates flilleting a salmon with an ulu during a smoked salmon demonstration, part of Fish Week 2023, on Wednesday, July 19, 2023, at the Kenai National Wildlife Refuge Visitor Center in Soldotna, Alaska. (Jake Dye/Peninsula Clarion)
Refuge to celebrate all things fish during weeklong event

Fish Week will take place July 16-19.

President Zen Kelly speaks during a meeting of the Kenai Peninsula Borough School District Board of Education in Soldotna, Alaska, on Monday, July 7, 2025. (Jake Dye/Peninsula Clarion)
School board finalizes budget with deep cuts to programming, classrooms

Multiple members of the board said they were frustrated by the state’s failure to fund education.

Former KPBSD Finance Director Liz Hayes speaks during a Kenai Peninsula Borough School District budget development meeting at Kenai Central High School in Kenai, Alaska, on Wednesday, Feb. 19, 2025. (Jake Dye/Peninsula Clarion)
School district finance department earns national awards

The two awards are based on comprehensive reviews of the district’s budget and financial reporting.

Children leap forward to grab candy during a Fourth of July parade on South Willow Street in Kenai, Alaska, on July 4, 2025. (Photo courtesy Sarah Every)
Celebrating the 4th in the streets

Kenai comes out for annual Independence Day parade.

Fire crews respond to the Bruce Fire, July 4, 2025, in Soldotna, Alaska. (Alaska Division of Forestry)
Firefighting crews respond to wildfire outside Soldotna

The 8-acre fire and two “spot fires” of less than one acre each are located near Mile 102 and 103 of the Sterling Highway.

Most Read

You're browsing in private mode.
Please sign in or subscribe to continue reading articles in this mode.

Peninsula Clarion relies on subscription revenue to provide local content for our readers.

Subscribe

Already a subscriber? Please sign in